Health is demonstrated By the mental Gauge, And is Vital to youre Survival, Health Will be restored, The Heavier and longer you sleep [ Taking a sedative Pill, should make you Sleep heavier, and longer.]

It is stated by Neko Zombie that your very present in the hotel will slowly drain your mental gauge over a long period of time, if the gauge empties your character will go insane and become a permament resident of the hotel.

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